Budget 2024: Growth, Debt Containment and Fiscal Consolidation Essential to Rescuing SA

The DA supports several critical proposals in the 2024 Budget: deficit reduction, debt containment, fiscal consolidation, and structural reforms. The DA has long advocated for these proposals, as part of the foundations to rescuing our country.

However, the DA also firmly believes that these measures must be accompanied by a strong pivot towards economic growth, which we will push hard in the GNU.

The DA supports that this Budget does not allocate any new funds for bailouts. It has long been the view of the DA that bailouts have caused a severe escalation of public debt, as well as caused cuts to critical public services and departmental budgets. South Africa is running out of fiscal space, and bailouts to failing SOEs are not sustainable.

The Budget further acknowledges that our debt to GDP ratio, at 74.6%, is far too high for a middle-income country, and that it must be brought in line with emerging market peers. The State spends 20% of its Budget on debt repayments, and this drains resources for service delivery.

The Budget further does not raise taxes for financial year 2024/5. The DA has strongly advocated against tax increases and will continue to do so on in the GNU. We further look forward to the upcoming review of administered prices (such as the fuel price) and the expansion of zero-rated VAT essential food items.

The DA further urges an acceleration of structural reforms to public monopolies to unlock growth. Poorly performing ports, freight rail, energy availability and other critical enablers need reform, and private sector participation is critical. South Africa needs growth to create jobs and increase tax revenue.

The DA urges all parties to the GNU to commit to the fiscal path that this Budget has taken on these key areas. To Rescue SA, we must rescue our country’s finances and get our debt under control.

This is the last Budget drawn by an ANC majority. The DA anticipates that the Medium-Term Budget Policy Statement, as well as the upcoming Adjustment Budget will incorporate further reforms towards a credible fiscal path, and prioritising growth, so more South Africans can get into work.